Explore GST rates in India for 2025. Full list of 0%, 5%, 12%, 18%, and 28% tax slabs on goods and services. Includes exemptions, cess & calculation guide.
In India, the Goods and Services Tax (GST) system categorizes items into distinct rates to simplify taxation and reflect the essentiality of products. Essential items that are crucial for daily living, such as food grains and healthcare products, enjoy a 0% tax, making them more accessible to all segments of the population. Basic necessities, including some food products and inexpensive clothing, are taxed at a modest 5%. This rate balances affordability with revenue generation, ensuring essential goods remain reasonably priced.
Standard goods, which encompass items like processed foods and computers, are set at 12%. This rate is tailored to their general use status, representing a fair medium in the GST structure. Most consumer products, including household appliances and personal care items, fall under the 18% bracket. This category covers a wide range of everyday goods, reflecting their widespread consumption.
Lastly, luxury and sin goods, such as high-end electronics and tobacco products, are taxed at the highest rate of 28%. This rate aims to curtail their use through higher pricing, aligning with both economic and public health goals. This tiered approach strategically aligns with economic and social objectives, ensuring that GST rates are both fair and purposeful. In this blog, we will explore the updated GST rates for 2025, their impact on industries, and key changes in tax slabs.
Overview of GST Rate Types and Structure in India
India’s Goods and Services Tax (GST) system is a comprehensive, multi-tiered framework designed to address the varied spectrum of goods and services across the economy. The following are the GST rates:
- Zero Percent: Essential items that are crucial for daily living, like food grains and healthcare products, fall under this rate. This exemption supports affordability and basic human needs.
- 5% GST Slab: Includes items essential beyond basic necessities, such as some food products and footwear. Helps keep these goods affordable without compromising on government revenue.
- 12% GST Slab: Assigned to goods like processed foods, which are standard but not basic necessities. Strikes a balance between essentiality and luxury, ensuring a moderate tax burden.
- 18% GST Slab: Covers a wide range of consumer goods, including electronics and household items. Reflects the common use and higher value of these products.
- 28% GST Slab: Targets luxury and non-essential items, including high-end vehicles and leisure services. Intended to modulate consumption patterns and contribute significantly to government revenues.
- Special rates such as 3% and 0.25% apply to items like gold and precious stones, recognizing their unique market dynamics.
- Composition Scheme Benefits: The scheme significantly eases the compliance burden while promoting business efficiency. Tailored for small businesses, this scheme simplifies GST rates to:
-
- 1% for manufacturers and traders.
- 5% for restaurants.
- 6% for certain service providers.
- TDS and TCS Under GST
- Tax Deducted at Source (TDS): At a rate of 2%, it applies to payments made to suppliers by specified entities, aiding in tax compliance and reducing evasion.
- Tax Collected at Source (TCS): E-commerce operators collect 0.5% TCS, ensuring that GST is collected upfront on sales and aids in regulating online marketplaces.
Historical Rates: It’s important to note that these rates have seen changes in the past. Before July 9th, 2024, the TDS rate was 1%, and the TCS rate was also 1%. These adjustments in rates reflect the government’s efforts to streamline tax administration and enhance compliance across different sectors.
Zero Percent GST Products in India
Below is a list of goods and services that are exempt from GST, ensuring affordability for consumers:
| Category | Tax Rate |
| Unprocessed Milk and Cream | 0% |
| Fermented Dairy Products like Curd and Lassi | 0% |
| Fresh Paneer (Cottage Cheese) | 0% |
| Fresh Eggs | 0% |
| Pure Honey | 0% |
| Raw Fruits and Vegetables | 0% |
| Edible Seeds and Dried Fruits | 0% |
| Whole Coffee Beans | 0% |
| Fresh Tea Leaves | 0% |
| Unrefined Grains including Rice and Wheat | 0% |
| Traditional Sweeteners like Jaggery and Raw Sugar | 0% |
| Natural Firewood and Fuelwood | 0% |
| Traditional Handloom Textiles | 0% |
| Handcrafted Musical Instruments | 0% |
| Religious Ritual Materials | 0% |
| Ground Gram Flour (Besan) | 0% |
| Art Books for Children | 0% |
| Academic and Learning Services | 0% |
| Unbranded Pure Honey | 0% |
Items Under the 5% GST Slab Rate
The following goods and services attract a 5% GST rate, making them more affordable while still contributing to tax revenues:
| Category | Tax Rate |
| Snacks and Drinks at Movie Theaters | 5% |
| Raw Snack Pellets | 5% |
| Unpackaged Spiced Popcorn | 5% |
| Enhanced Rice Kernels | 5% |
| Synthetic Gold Thread | 5% |
| Fish Extract Paste | 5% |
| Low Discharge Steel Slag | 5% |
| Harvested Plant Resins | 5% |
| Ready-to-Use Henna Cones | 5% |
| Various Cooking Oils | 5% |
| Raw Cocoa Beans | 5% |
| Premade Pizza Crusts | 5% |
| Traditional Indian Snacks | 5% |
| Unprocessed Tobacco | 5% |
| Pure Graphite | 5% |
| Quarried Stone | 5% |
| Environmentally Beneficial Products like Fly Ash | 5% |
| Unprocessed Natural Rubber | 5% |
| Woven Silk Threads | 5% |
| Natural Cotton Thread | 5% |
| Woven Coir Products | 5% |
| Wheelchairs and Similar Mobility Devices | 5% |
| Commercial Fishing Boats | 5% |
| Maintenance and Repair for Aircraft | 5% |
Items Under the 12% GST Slab Rate
Below is the list of goods and services that attracts 12% GST rate:
| Category | Tax Rate |
| Sweetened Condensed Milk | 12% |
| Processed Dried Fruits and Nuts | 12% |
| Refined Wool Fat | 12% |
| Processed Chicory Roots | 12% |
| Soy-Based Beverages | 12% |
| Quarried Granite Blocks | 12% |
| Medical-Grade Rubber Gloves | 12% |
| Carved Wooden Statues | 12% |
| Engineered Bamboo Flooring | 12% |
| Aluminum Domestic Utensils | 12% |
| Irrigation Spray Nozzles | 12% |
| Standard Bicycles | 12% |
| Optical Goods like Contact Lenses and Frames | 12% |
| Rain Umbrellas | 12% |
| Packaged Popcorn | 12% |
| Precast Concrete Blocks | 12% |
Items Under the 18% GST Slab Rate
Below is the list of items taxed at 18% GST:
| Category | Tax Rate |
| Compact Televisions (up to 27 inches) | 18% |
| Smartphones | 18% |
| Sweetened Popcorn with Caramel Coating | 18% |
| Pre-owned Cars and EVs | 18% |
| Laundry Machines | 18% |
| Household Refrigerators | 18% |
| Cooling Appliances (Geysers, Coolers, Fans) | 18% |
| Various Electric Appliances | 18% |
| Gas-Powered Cooking Stoves | 18% |
| Insulated Bottles and Flasks | 18% |
| Power Converters | 18% |
| Natural Plant Waxes | 18% |
| Cocoa-based Fats and Oils | 18% |
| Assorted Chocolates and Confections | 18% |
| Bakery Products including Cakes and Biscuits | 18% |
| Frozen Desserts and Ice Cream | 18% |
| Soft Drinks | 18% |
| Extracted Metal Ores and Concentrates | 18% |
| Coal Tar | 18% |
| Cosmetics and Makeup Products | 18% |
| Men’s Grooming Products (Shaving Creams, Soaps) | 18% |
| Cleaning and Buffing Preparations | 18% |
| Sanitary and Hygiene Papers | 18% |
| Filters for Cigarettes | 18% |
| Electronic Toys | 18% |
| Mechanical Components (Bearings) | 18% |
Items Under the 28% GST Slab Rate
The following items attract a 28% GST rate:
| Category | Tax Rate |
| Virtual Gaming Platforms | 28% |
| High-performance Motorcycles (plus 15% cess) | 28% |
| Luxury Vehicles like BMWs | 28% |
| Compact Automobiles (plus 1% or 3% cess) | 28% |
| Processed Sugarcane By-products (Molasses) | 28% |
| Energy Drinks with Caffeine | 28% |
| Soda and Other Fizzy Drinks | 28% |
| Premium Tobacco Products (Cigars, Cheroots) | 28% |
| Fuel Dispensing Machines | 28% |
| Private Aircraft | 28% |
| Tobacco Pipes | 28% |
Updated List of Items Under the 3% GST Rate Slab
Below, we provide a detailed look at the specific items under the 3% and 0.25% GST slabs, showcasing how the GST system accommodates different products by their essentiality and value.
Items Under the 3% GST Slab Rate
| Category | Tax Rate |
| Articles of precious metal or of metal clad with precious metal | 3% |
| Diamonds (excluding non-industrial, not mounted or set) | 3% |
| Gold | 3% |
| Imitation Jewellery | 3% |
| Natural or cultured pearls (not strung, mounted or set) | 3% |
| Precious stones (other than diamonds) and semi-precious stones | 3% |
| Silver | 3% |
| Waste and scrap of precious metal or metal clad with precious metal | 3% |
Items Under the 0.25% GST Slab Rate
| Category | Tax Rate |
| Non-industrial diamonds | 0.25% |
| Synthetic or reconstructed precious or semi-precious stones | 0.25% |
| Unworked precious/semi-precious stones | 0.25% |
Comparison of Old vs. New GST Rates
The GST rates in India for 2025 are categorised into different slabs based on the nature of goods and services. Below is a summary of the new GST rates for specific goods and services:
| Category | Old GST Rate | New GST Rate |
| Railways Goods and Parts under Chapter 86 | 12% | 18% |
| Pens | 12% | 18% |
| Metal Concentrates and Ores | 5% | 18% |
| Certain Renewable Energy Devices | 5% | 12% |
| Recorded Media Reproduction and Print | 12% | 18% |
| Broadcasting, Sound Recordings, and Licensing | 12% | 18% |
| Printed Material | 12% | 18% |
| Packing Containers and Boxes | 12% | 18% |
| Scrap and Polyurethanes | 5% | 18% |
| Namkeens & Extruded/Expanded Savory Food | 18% | 12% |
| Certain Cancer Drugs | 12% | 5% |
| Car & Motorcycle Seats | 18% | 28% |
How to Calculate GST on Goods and Services
Here is a step-by-step process to calculate GST:
- Step 1: Identify the Selling Price: Sum of Cost Price + Profit Margin (This is the amount before GST is applied).
- Step 2: GST Amount: Selling Price × GST Rate / 100
- Step 3: Calculate the Final Price: Selling Price + GST Amount.
Example Calculation of GST
Below is an example to calculate GST manually:
| Description | Calculation | Amount (₹) |
| Selling Price | Cost Price + Profit | 1,000 |
| GST Rate | 18% | – |
| GST Amount | Selling Price × 18% | 180 |
| Final Price | Selling Price + GST Amount | 1,180 |
Apart from the standard GST rates, certain goods attract an additional cess, primarily to discourage consumption and generate revenue for specific government initiatives. This cess is levied over and above the applicable GST rate and is typically imposed on goods that are considered luxury items or harmful to health. Some of the key products subject to GST cess include: To ensure uniform classification of goods and services for taxation, India follows the HSN (Harmonized System Nomenclature) code for goods and the SAC (Services Accounting Code) system for services. The GST rates in India, ranging from 0% to 28%, are thoughtfully structured to support both economic growth and social welfare. By differentiating between essential goods at 0% and luxury items at 28%, the system promotes affordability while also discouraging excessive consumption of high-end goods. This ensures a balanced approach to taxation, which is crucial for a diverse economy like India’s. As consumers navigate this system, understanding the different GST rates, from 5% on basic necessities to 18% on most consumer products, helps in making informed purchasing decisions. Whether buying daily necessities or luxury items, awareness of these tax brackets can lead to smarter, more cost-effective choices that benefit both individuals and the broader community. Below is a categorized list of GST rates for various products and services in India:
India has five GST rate slabs: 0%, 5%, 12%, 18%, and 28%, which apply to various goods and services. The GST Council is responsible for setting these GST rate categories.
Essential items like fresh fruits, vegetables, and educational services are exempt, attracting a 0% GST rate.
Mobile phones fall under the 12% GST slab in 2025.
Luxury items such as automobiles and cigarettes attract a 28% GST rate.
Recent changes include reductions and increases in GST rates for specific items like fortified rice kernels and railway goods.
Household essentials like sugar and tea attract a 5% GST rate.
Educational services are exempt from GST, maintaining a 0% rate in 2025.
Healthcare products like life-saving drugs are taxed at a reduced 5% GST rate.
The official GST portal at cbic-gst.gov.in provides a complete list of GST rates.
The GST rate for gold jewelry is 3%, while diamonds attract 1.5% GST.
Yes, electric vehicles are taxed at a reduced GST rate of 18%, lower than conventional fuel vehicles. Cess Under GST
HSN and SAC Code System in GST
HSN Code for Goods
SAC Code for Services
Conclusion on GST Rates
GST Rates on Various Goods and Services
FAQs on GST Rates in India
What are the GST rates in India for 2025?
Which items are exempt from GST in India?
What is the GST rate for mobile phones in India?
Are there any luxury items that are taxed at the highest GST rate?
What recent changes were made to the GST rates by the GST Council in 2025?
What is the impact of GST on household essentials?
How does the GST rate for educational services work in 2025?
What are the GST implications for healthcare products in 2025?
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What is the GST rate for gold in India?
Is GST applicable on electric vehicles?
